China's Transport and Communication Firms: Transforming National Champions into Global Players

Abstract

China's entry into the World Trade Organisation (WTO) exposes its state-owned maritime, aviation and telecommunications operators to unprecedented competition. This development raises a series of critical issues about China's transition from a state-planned regime towards a real market economy. How will China's leading state-owned firms in deep-sea container shipping, air passenger transport and telecommunications respond to the dilemma posed by the World Trade Organisation and to what extent has Hong Kong been involved in China's transport and communications restructuring process? These broad issues are addressed by examining progress on the Chinese Government's post-1993 plans to restructure each of the key state enterprises in sea-land transport, air transport and telecommunications. Specifically we are concerned with the degree to which China's national champions in these transport and communications arenas have been remade into global players. Particular attention is paid to the role of Hong Kong in this transformation since its return to China in 1997. Our studies show that China has transformed its national champions into a global players in container shipping. The process may be beginning to happen in air transport but has yet to get underway in telecommunications.